Asked by mom

Oliver is interested in selling shares of his company to raise additional capital. He knows some investors who might be interested. While no repayment would be required for this type of financing, what would be the biggest disadvantage that Oliver should understand before choosing this option?

Responses

He would be required to pay interest even if the business did not make money.

He would be required to pay interest even if the business did not make money. - no response given

He might lose his seed money to his investors.

He might lose his seed money to his investors. - no response given

He might need to put up some form of collateral as security.

He might need to put up some form of collateral as security. - no response given

He could give up some ownership and control of his business.

He could give up some ownership and control of his business. - no response given

All Answers 1

Answered by GPT-5 mini AI
He could give up some ownership and control of his business.

Explanation: selling shares is equity financing — investors receive ownership stakes (and often voting rights or board seats), which dilutes the founder’s ownership and can reduce his control over business decisions.